Everyone who earns a salary subject to labour market contributions automatically receives an employment allowance.

  • The maximum employment allowance is 10.10% or a maximum of DKK 37,200 in 2019 (9.50% or DKK 34,300 in 2018).

Everyone who earns a salary subject to labour market contributions or who earns a business profit automatically receives a job allowance.

  • The job allowance is 3.75% of income over DKK 191,600 or a maximum of DKK 2,100 in 2019 (2.50%, DKK 187,500 and DKK 1,400 in 2018).

The employment and job allowances are calculated as a percentage of your income. However, there is an upper limit to the allowance you can claim.

Employment allowance

 %

Maximum allowance, DKK

Minimum amount of salary you need to earn to be entitled to the full allowance

2018

9.50

34,300

DKK 361,053

2019

10.10

37,200

DKK 368,317

Job allowance rate

 %

Maximum allowance, DKK

Minimum amount of salary you need to earn to be entitled to the full allowance

2018

2.50*

1,400

DKK 243,500

2019

3.75**

2,100 DKK 247,600

* Of income above DKK 187,500.

** Of income above DKK 191,600.

The allowances are calculated automatically on your salary (including labour market contributions (AM-bidrag)) or on your business profit, for example.

If you are a single parent and are entitled to and receive additional child allowance according to the Child Allowance Act, you will receive an additional employment allowance of maximum DKK 22,400 in 2019 (DKK 21,200 in 2018).

If you become a single parent

Udbetaling Danmark will inform the Dansih Tax Agency (Skattestyrelsen) if you become a single parent. This means that you will receive the additional allowance automatically. Udbetaling Danmark informs us on a quarterly basis, and once we have been informed, you will receive a new preliminary income assessment.

Please see our legal guide (in Danish) for further legal information.